The India-Oman trade pact, set to take effect on June 1, 2026, marks a significant milestone in bilateral trade relations. This agreement is the fifth free trade agreement implemented under the Modi government since 2014, following similar pacts with Mauritius, the UAE, Australia, and the European Free Trade Association.
Key Benefits for India
Duty-Free Access:
- The pact provides 100% duty-free market access for Indian exports to Oman, covering 98.08% of Oman's tariff lines, representing 99.38% of the trade value based on the 2022-23 average.
- Immediate zero-duty access is granted from "Day One" of the agreement.
Economic Impact:
- The agreement eliminates the current 5% import duty on Indian goods worth USD 3.64 billion.
- Key sectors benefiting include textiles, agricultural products, transport equipment, precision instruments, processed food, and gems & jewellery.
Sectoral Gains
Oman will grant immediate zero-duty access to crucial Indian industrial segments, including:
- Iron and steel
- Electrical and industrial machinery
- Marine products and copper goods
"This agreement unlocks fresh export windows for Indian minerals, chemicals, base metals, machinery, plastic, rubber, automobiles, clocks, instruments, glass, ceramics, marble, and paper," said a trade analyst.
Protective Measures
India has placed 2,789 tariff lines on its exclusion list to protect sensitive sectors:
- Excluded categories include transport equipment and other key domestic sectors.
Bilateral Trade Overview
| Year | Total Trade (USD Billion) | Indian Exports (USD Billion) | Omani Imports (USD Billion) |
|---|---|---|---|
| 2024-25 | 10.61 | 4.02 | 6.59 |
| 2025-26 | 11.18 | 4.02 | 7.16 |
The India-Oman trade pact is expected to further strengthen economic ties and boost trade volumes between the two nations.
